International Trader - Asia

India's "Tale of Two Markets"

Until a year ago, india, the world's second-largest emerging economy, was seen as a potential global growth engine, alongside China. Now it's in danger of falling off investors' radar screens. After growing at almost 8% annually, on average, for years, India's economy is expected to expand by a relatively modest 5% both this year and in 2014.

Last week, the rupee hit a record low near 1.6 U.S cents, and policy makers are trying to prevent currency depreciation from triggering capital flight and boosting inflation as...